Directors’ confidence leapt sharply upward following the election, entering positive territory and reaching its highest level since the 2016 EU referendum, according to the latest IoD Confidence Tracker.
In a poll of 952 IoD members conducted in the vote’s aftermath, overall confidence in the economy for the year ahead reached positive 21%, up from negative 18% last month, also marking the largest positive swing recorded by the IoD. Directors’ confidence in their own firms also increased to positive 46%.
The pick-up in confidence was accompanied by a significant increase in leaders’ investment intentions for the year ahead. A net balance of 18% expected their investment levels to increase. Hiring expectations also increased, albeit slightly, while the bulk of members anticipated higher costs in the 12 months ahead, highlighting that the new Government has its work cut out to support the labour market and to cut firms’ mounting costs.
The current state of the economy remained the top challenge, followed by continued uncertainty around the UK’s future relationship with the EU.
IoD Confidence Tracker
© Institute of Directors
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